Positve Operating Leverage Results in Another Year of Hotel Value Gains; Cap Rates Start to Rise
Five years of steady cap rates and rising NOI have resulted in significant U.S. hotel asset appreciation. The current economic landscape is likely to cause hotel cap rates to rise in 2016, moderating future value gains.
By Suzanne Mellen, Senior Managing Director - Practice Leader, San Francisco, HVS
Five years of steady cap rates and rising NOI have resulted in significant U.S. hotel asset appreciation. The current economic landscape is likely to cause hotel cap rates to rise in 2016, moderating future value gains.